While shipping goods over India, one needs to be aware of the e-way bill limit. It is a threshold value referring to when an e-way bill is needed during transportation. This information is critical for those processing shipments above ₹50,000. In the following blog, we will explain in simple words what the e-way bill limit is, why it matters, and how it impacts your logistics and compliance.
What is an E-Way Bill?
An e-way bill is a document that shall be electronically generated for the movement of goods valued at more than ₹50,000. This e-way bill limit becomes very important in the following aspects:
Tracking Consignments: Enables live tracking of goods from the seller to the receiver.
Compliance: Companies get a way to comply with GST compliances.
Reduced Paperwork: The paperwork is reduced by avoiding physical documents, hence making the process easier.
An e-way bill, prepared through the e-way bill portal, contains a unique number that can be utilized for tracking or verification of such e-way bill.
E-Way Bill Limit as Per CGST Rules
E-way bill requirement limit under CGST rules for most of the interstate transport is ₹50,000. This will be used for making:
E-Way bill requirement: Every transport of goods within the limit should carry an e-way bill.
State limit: States are at a liberty to decide otherwise on the limit for concerning intrastate movements. This way there will not be any uniformity across India.
The e-way bill system was made compulsory with effect from April 1, 2018, with states specifying their respective requirements in the first half of 2018.
State-Specific E-Way Bill Limits
State | Particulars | E-Way Bill Threshold Limit |
Andhra Pradesh | Required for all taxable goods. Applicable if the value exceeds Rs. 50,000. | Rs. 50,000 |
Arunachal Pradesh | Mandatory for all taxable goods. | Rs. 50,000 |
Assam | Required for all taxable goods. Temporarily suspended for intrastate movement in some cases. | Rs. 50,000 |
Bihar | Applicable for both taxable and non-taxable goods. Required if the value exceeds Rs. 1,00,000. | Rs. 1,00,000 |
Chhattisgarh | Only required for 15 specified goods. No e-way bill needed for other goods within the state unless the value exceeds Rs. 50,000. | Rs. 50,000 |
Delhi | Necessary for both taxable and non-taxable goods when the value exceeds Rs. 1,00,000. | Rs. 1,00,000 |
Goa | Only required for 22 specific goods. | Rs. 50,000 |
Gujarat | Required for all goods except specified goods for job work. Earlier, intra-city movement did not require an e-way bill. | Rs. 50,000 |
Haryana | Mandatory for all taxable goods. | Rs. 50,000 |
Himachal Pradesh | Required for all taxable goods. | Rs. 50,000 |
Jammu and Kashmir | No e-way bill is required for transporting goods within the Union Territory of Jammu and Kashmir. | No e-way bill |
Jharkhand | Required for all goods except specified ones if the value exceeds Rs. 1,00,000. | Rs. 1,00,000 |
Karnataka | Necessary for all taxable goods if the value exceeds Rs. 50,000. | Rs. 50,000 |
Kerala | Required for all taxable goods if the value exceeds Rs. 50,000. | Rs. 50,000 |
Madhya Pradesh | Applicable to all goods except tobacco products, pan masala, medicine, surgical goods, and active pharmaceutical ingredients. Required if the value exceeds Rs. 1,00,000. | Rs. 1,00,000 |
Maharashtra | Mandatory for all taxable goods if the value exceeds Rs. 1,00,000. No e-way bill needed for certain goods transported for job work. | Rs. 1,00,000 |
Manipur | Required for all taxable goods. | Rs. 50,000 |
Meghalaya | Mandatory for all taxable goods. | Rs. 50,000 |
Mizoram | Required for all taxable goods. | Rs. 50,000 |
Nagaland | Necessary for all taxable goods. | Rs. 50,000 |
Odisha | Mandatory for all taxable goods. | Rs. 50,000 |
Puducherry | Required for all taxable goods. | Rs. 50,000 |
Punjab | Necessary for all taxable goods when the value exceeds Rs. 1,00,000. No e-way bill needed for certain specified cases. | Rs. 1,00,000 |
Rajasthan | Required for all goods except tobacco products, pan masala, articles of wood, iron, and steel. | Rs. 2,00,000 |
Sikkim | Mandatory for all taxable goods. | Rs. 50,000 |
Tamil Nadu | Required for all taxable goods when the value exceeds Rs. 1,00,000. | Rs. 1,00,000 |
Telangana | Necessary for all taxable goods. | Rs. 50,000 |
Tripura | Required for all taxable goods. | Rs. 50,000 |
Uttar Pradesh | Mandatory for all taxable goods. Transporters must also place RFID tags on vehicles carrying goods. | Rs. 50,000 |
Uttarakhand | Required for all taxable goods. | Rs. 50,000 |
West Bengal | Necessary for all taxable goods when the value exceeds Rs. 1,00,000. | Rs. 1,00,000 |
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Importance of the E-Way Bill Limit
- Better Compliance: This limit on e-way bills ensures that the businesses stay within the ambit of GST and reduces chances of non-compliance and tax evasions.
- Lesser Tax Evasions: The tracking of the movement of goods will ascertain correct taxation and reduce chances of evasion.
- Faster Transportation: Since the system of e-way bills is electronic, reliance on physical documents reduces, which also reduces waiting periods at checkpoints.
- Better Transparency: The e-way bill system allows transparency in tracing shipments and ascertains compliance.
- Eco-Friendly: Reduction in paper documents through the e-way bill system helps in environmental sustainability and minimizes the ecological impact of logistics.
Further if you’re looking to move from one place to another then you should feel free to checkout our packers and movers cost calculator, to get an estimate moving cost.
Recent Updates on E-Way Bill Limits
4 August 2021: The blocking of e-way bills on account of non-filing of GSTR-3B shall resume from 15 August 2021. Hence, compliance with return filing is essential to avoid restrictions on the generation of new e-way bills.
18 May 2021: Clarification was issued by the CBIC through a Circular dated 18 May 2021 that e-way bill blocking would apply in the case of GSTINs with defaults and not to transporters or recipients.
June 1, 2021: The e-way bill portal has been upgraded to allow reporting of transport modes as “Ship/Road cum Ship” for providing flexibility in reporting transportation.
Also Read: How to Pick the Right Moving Truck Size?
Key Terms Related to the E-Way Bill Limit
E-Way Bill: An electronic document mandated for the movement of goods in case its value is more than ₹50,000. This document contains information about the movement and helps in the tracking of products while ascertaining compliance with GST.
Consignor: The person who or entity that sends the goods. He is responsible for generating the e-way bill before the movement or dispatch of goods.
Consignee: The person or entity receiving the goods. He checks the e-way bill details on receipt of such goods.
Transporter: The individual or firm who is moving the goods. He has to generate and carry the e-way bill if the same is not generated by the consignor.
GSTIN-Goods and Services Tax Identification Number: A number is given to businesses for tax purposes, which is required in the e-way bill.
HSN Code-Harmonized System of Nomenclature Code: The code to classify goods for customs and tax purposes, used in e-way bill.
Transport Document Number: Document number used to transport the goods, either Railway receipt or Airway bill no.
Part A of the E-Way Bill: Details of the shipment, such as GST, Invoice number, Destination and value of the goods to be delivered.
Part B of the E-Way Bill: Vehicle Number to be used for transporting the goods.
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Conclusion
Knowing the e-way bill limit is essential for smooth and lawful transit of goods. It makes businesses compliant with the rules of GST, reduces paperwork, and avoids delays. Keeping up with these limits and updates will definitely save you from fines and hassles.
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FAQs
The e-way bill limit is ₹50,000, which means that an e-way bill has to be generated when the value of goods in a single invoice is more than ₹50,000. Also, in some states, different limits may be applicable under specific scenarios.
No, generally you do not need an e-way bill if you’re moving goods for a distance less than 50 km within the same state. However, it does depend on state-specific regulations.
While it is not compulsory to generate an e-way bill for the movement of goods of value less than ₹50,000. The person may at his option generate an e-way bill if they wants to keep a record of shipment or for any other purpose.
Yes, in Maharashtra, while moving goods with a consignment value of more than ₹100,000, one must generate an e-way bill. It helps track the goods and allows for adherence to tax regulations in the state.